5 Reasons Why OTT Video Advertising Is Here To Stay


The average American household is subscribed to 3.4 streaming services to consume TV shows and movies through OTT, or over-the-top, video services. Streaming providers like Hulu, Amazon Prime, and HBO Max are all examples of OTT channels, or internet-based video channels. And in 2020, OTT advertising spend exceeded $9 billion in the US, as people young and old have an appetite for the copious amount of content available to them through streaming services. So if you’re thinking of creating an ad-based OTT strategy, now is the perfect time. 

Beyond the quality of content available today, there are many reasons why OTT has cemented its vitality in the advertising world. Notably, dealerships trying to most granularly attract shoppers in their PMA have come to trust the benefits of OTT.

1. Track Dealership Foot Traffic

Unlike traditional TV advertising, OTT allows you to track the success of your video advertising. The ability to connect an ad view with a website visit, store visit, and even a vehicle sale helps grow marketing data and attribute ROI.

2. Hyper-Targeting By Audience

OTT ads can be set up to run within very granular parameters. Using online behavior, OTT ads can be optimized for users who are in-market, or have intent to purchase within the next 30 days, as well as users who are pre-market, or have intent to purchase within the next 90 days.

Then, with the help of the IT targeting, the household who has been served ad impressions can be retargeted with banner ads to further encourage onsite activity. All of this information is properly tracked and accounted for in reporting. 

3. Hyper-Targeting By Zip Code or Radius

Just as audiences can be prioritized and hyper-focused, targeting specific geos is another way to minimize ad waste. Utilizing pump-in/pump-outs reports is a great way to identify which zip codes or radius targeting you can begin testing. The goal with OTT is to find a formula for success where you’re able to achieve maximum household impressions for the right audiences without over-segmenting and causing sky-high CPMs (cost per thousand impressions). 

4. No-Waste Conquesting By Brand

Perhaps a household is in-market and browsing online for a vehicle browsing but looking solely at another brand. That behavior can still hold value in an OTT strategy for conquesting purposes. If an OTT campaign is running into high CPMs due to narrow geo-targeting or low in-market audiences, conquesting is an effective way to grow your dealership’s brand awareness and persuade some new shopper consideration. 

5. Audio Files At Work Via Digital Music Providers

Yet another opportunity for impressions! With OTT, you can repurpose your commercials’ audio files so they can also be at play on digital music services like Spotify and Pandora. All of the tracking, targeting, and attribution data will be reported just as the video streaming services would be.

According to Roku, viewership, as well as listenership, for online-based streaming services is expected to surpass traditional radio/television in the next 5 years. When OTT is managed through a digital provider who understands the audience and geographic customizations, brands typically see the following results:

  • 12 times more branded searches occur
  • 6% increase in brand favorability
  • 32% increase in new-to-brand purchases

Streaming providers will continue thinking of ways to scale their services in this new decade. We’ll certainly be eager and ready to adapt our strategies to best meet the demands of audiences today via OTT advertising.

Interested in launching an OTT campaign or want to learn more about digital marketing options for your business? Schedule a demo and we’ll get in touch to hear more about your unique needs.

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